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Best Short-Term Business Loans 2019

March 28, 2019
Small Business, Small Business Loans
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Short-term business loans can give your business the fast cash it needs to bridge cash-flow gaps, handle emergencies and other immediate financing needs, or take advantage of a business opportunity.

Think of them as quick-turnaround loans: Borrow what you can pay back relatively quickly so you can focus on running your business rather than managing debt.

Short-term business loans: Summary of options

Funding options Do you qualify?Loan amount & APR
kabbage

Apply now at Kabbage
• 560+ personal credit score

• 1+ year in business

• $50,000+ annual revenue
• $2,000 to $250,000

• 24% to 99%
fundbox

Line of credit


Apply now at Fundbox
• No minimum personal credit score

• $50,000+ annual revenue

• 3+ months in business
• $1,000 to $100,000

• 10.1% to 79.8%
bluevine

Line of credit


Apply now at BlueVine
• 600+ personal credit score

• $100,000+ annual revenue

• 6+ months in business
• $5,000 to $250,000

• 15% to 78%
ondeck

Apply now at OnDeck
• 500+ personal credit score

• $100,000+ annual revenue

• 1+ year in business
• $5,000 to $500,000

• 9% to 99%
Street Shares
Apply now at StreetShares
• 600+ personal credit score

• $75,000+ annual revenue

• 1+ year in business
• $2,000 to $250,000

• 9% to 40%

Apply now at Credibility Capital
• 680+ personal credit score

• $250,000+ annual revenue

• 2+ years in business
• $50,000 to $400,000

• 10% to 25%

Here are short-term financing options from online business lenders:

Short-term lines of credit: Kabbage, Fundbox and BlueVine.

Short-term business loans: OnDeck, StreetShares and Credibility Capital.

Short-term lines of credit

If you need to bridge cash-flow gaps: Kabbage, Fundbox and BlueVine

Lines of credit are more flexible and generally have shorter repayment periods than short-term loans, making them more suitable for managing cash flow.

Kabbage and Fundbox are good options for borrowers with bad credit.

  • Pros: Fundbox does not require a minimum credit score, while Kabbage’s minimum is 560.
  • Cons: Kabbage is costly compared with other options; Fundbox repayment terms only go up to 12 weeks, compared to six or 12 months at Kabbage.
  • Loan amount: $2,000 to $250,000.
  • APR: 24% to 99%.
  • Loan term: 6, 12 or 18 months.
  • Funding time: A few minutes to several days.
  • Read our Kabbage review.
Apply now at Kabbage

Line of Credit

  • Loan amount: $1,000 to $100,000
  • APR: 10.1% to 79.8%
  • Loan term: 12 weeks
  • Funding time: As fast as next business day
  • Read our Fundbox review
Apply now At Fundbox

BlueVine is a good option for newer businesses.

  • Pros: Only requires a minimum six months in business to qualify; fast funding.
  • Cons: High borrowing costs; need strong revenue.

Line of Credit

  • Loan amount: $5,000 to $250,000.
  • APR: 15% to 78%.
  • Loan term: Repaid over 6 or 12 months.
  • Funding time: As fast as 24 hours.
  • Read our BlueVine review.
Apply now at BlueVine


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Short-term business loans

If you need fast cash: OnDeck and StreetShares

OnDeck is a good option if you don’t have perfect credit.

  • Pros: High borrowing amounts; fast funding.
  • Cons: Costly financing; frequent repayments.

StreetShares is a good option if you have low revenue.

  • Pros: Revenue requirement starts at $75,000; no prepayment penalties.
  • Cons: Funding maxes out at $150,000 for term loans.

Term Loan

  • Loan amount: $5,000 to $500,000.
  • APR: 9.1% to 99.8% for term loans; 11% to 63.2% for lines of credit.
  • Loan term: Repaid daily or weekly for 3 to 36 months.
  • Funding time: As fast as 24 hours but typically a few days.
  • Read our OnDeck review.

*APRs change quarterly

Apply now at OnDeck

Term Loan

  • Loan amount: $2,000 to $250,000.
  • APR: 9% to 40%.
  • Loan term: 3 to 36 months.
  • Funding time: 1 to 5 days.
  • Read our StreetShares review.
Apply now at StreetShares

If you want low rates: Credibility Capital

Credibility Capital is a good option if you have strong credit.

  • Pros: Low rates starting at 10%; no prepayment penalties.
  • Cons: Requires strong credit; shorter repayment terms.
  • Loan amount: $50,000 to $400,000.
  • APR: 10% to 25%.
  • Loan term: One, two or three years.
  • Funding time: Seven days on average.
  • Read our Credibility Capital review.
Apply now at Credibility Capital

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Pitfalls of short-term loans

While short-term business loans provide fast cash, they do come with some disadvantages, including:

  • Higher cost: Short-term business loans typically carry a higher annual percentage rate, or APR, than long-term loans. Use NerdWallet’s business loan calculator to figure out how much a loan will cost you.
  • More frequent repayments: Some lenders require payments daily or weekly as opposed to monthly. Although these payments are smaller, their frequency can be an issue for businesses that have uneven sales or don’t always hold much cash in a bank account.
  • Risk of debt trap: The speed and ease of short-term business loans can become addictive. Instead of repaying the debt in full, business owners may be enticed to refinance and roll over the debt into a new loan.

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Compare the best small-business loans

NerdWallet has created a comparison tool of the best small-business loans to meet your needs and goals. We gauged factors including lender trustworthiness, market scope and user experience, and arranged them by categories that include your revenue and how long you’ve been in business.

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